Cost of running a renovation firm (3/3)

Tldr - It is not as cheap as people think to run an ethical & stable renovation firm.

Watch our tiktok channel if you lazy to read.

After exploring in part 1 and part 2 of our series, this is the final, combined cost breakdown to run a renovation firm.

//

In total: 

• Upfront cost: $120k 

  • $40k advance payments for suppliers and setting up of office resources

  • $80k building a showroom

• Monthly running cost: $36k

  • $5k in rental

  • $14.5k in staff

  • $2k in tech

  • $12.5k in marketing

  • $2k in miscellaneous

Of course, as shared in our previous post, there are many variables which can cause a disparity in cost depending on how each firm is run. For eg. if the boss is running a one man show, then the cost would lower. If the boss hires in-house workers instead of outsourcing, the staff cost will balloon.

But at least now you know what the main cost drivers are.

Given the parameters we set out in part 1, these numbers are very real.

We hope this gives a glimpse of why running a sustainable and ethical ID firm is not as easy as people think it to be. It involves consistent personal and financial discipline, especially when there is a lot of smoke and mirrors around. 

Follow us below to hear more!